Looking for advice. Sell current home and buy one in cash
Posted by Bigben030@reddit | preppers | View on Reddit | 49 comments
Hi, currently considering selling our current home in Maryland and buying a house in West Virginia for 40k. Needs some repairs and tlc. Needs septic replaced quoted at 6k, electrical meter box and water heater. Then just basic tlc. With the net proceeds from our house sale and cashing out my retirement pension I could pay the 40k cash for it. I’m only 25 can restart my pension since it’s not a 401k but a state pension program once I get work there. Would basically make us debt free besides a few credit cards and basic living expenses. Just wanted opinions and advice
pf_burner_acct@reddit
What's your current rate?
Buying a dilapidated shack in WV with a cashed out retirement fund sounds like a sooper stoopid decision.
More often than not, especially with a low rate, paying off a mortgage is just a bad emotional decision that might make feel good, but not actually lead to an optimal outcome.
The way I see this ending is that you end up in a low-value home with fewer employment options and in an undesirable location that probably isn't great to raise a family.
This sounds dumb.
Bigben030@reddit (OP)
My current rate is 7%. Yeah I think we are leaning towards staying put
CleanCut2018@reddit
If you can find work, it's safe, and there is adequate health care; I fully support cashing in your chips and buying a house outright.
Not having a mortgage or a potential foreclosure(should SHTF) is liberating. All 3 houses we've sold gave us the ability to clear debt to zero; but the sale of the last house got us also mortgage free.
Mortgage free at 25 is a huge advantage.
The risk is buying a money-pit to be buried in.
Bigben030@reddit (OP)
Yeah I’m gonna throughly check out the house. It needs a septic and water heater, and new electric meter. Plan to do solar but I need power to start. Selling our current home and cashing in my current retirement would give me enough to purchase it out right now
CleanCut2018@reddit
Definitely do your due diligence. I see you're a mechanic, so you shouldn't have trouble finding work; if all else fails, hang your own shingle if you have a garage/shop space.
Our first house, my wife took from her retirement (RRSP here) for the down payment. We capitalized on the red hot real estate market in 2016-2022 to get where we're at.
You can relatively quickly replenish your retirement funds by the savings of not having a mortgage. It's doable, if the house isn't a money pit. I say do it. Your peers are unlikely to even get into the market these days, so you already will have a huge leg up with a fully paid asset.
All the best!
Bigben030@reddit (OP)
I appreciate your advice thank you I’ll come back with any updates
SunLillyFairy@reddit
So complex… so many points to consider. “Once I get work there.” Shouldn’t you get work before you move?
Paying off my mortgage early was the ticket to retire early. We prep so we can live and live well… and that’s the ultimate. So, on the surface it’s a good plan. But… so much to consider. Have you had the house inspected? Could it just be a money pit? Are you familiar with the area? Are you moving away from family/friends?
I moved from CA to NC once. Around your age … married with kids. Did all my research… found a great home and hubby had a great job. We definitely had more income and less expenses. We planned to stay there forever… but moved back almost 1 year to the day.
Why? Humid, racist, big bugs, tornado warnings… culture shock. The food at the grocery stores was different, there were no bike paths, people drove like shit, poor people still had outhouses, teachers got pissed at my kids for not saying “yes ma’am,” (which is disrespectful sarcasm in CA)… a bunch of little things (and a few big ones) added up to misery. We hated it. Folks moving the opposite direction might have the same culture shock experience.
Being debt free is not an advantage if you’re miserable.
sheeprancher594@reddit
Culture shock within the US is a real thing.
FatherOfGreyhounds@reddit
Will you be able to find work in WV? Specifically near the house? Also, have you ever fixed up a house that needs TLC? If you have, you know what you are facing. If not, you really need to do some repairs before jumping into a serious project house.
Bigben030@reddit (OP)
I have our first home I replaced the kitchen cabinets plumbing etc. I am by no means skilled at construction. We are going to see the house first obviously if the repairs seem to extensive then we’ll pass. I just feel 50/50 on it. Like the old saying you miss 100% of shots you don’t take but also don’t want to fail either so
Second-Round-Schue@reddit
You should probably look at the house and make a determination BEFORE asking this question and expecting constructive replies.
Bigben030@reddit (OP)
I can find work I’m a mechanic already have had a few job interviews etc
YogurtclosetThis4540@reddit
Hi, I’m looking to buy real estate in MD. If you’re considering selling, I’m interested in a cash buy in that area. Would like to know more about the property, if possible.
To your post: You’re young. The move isn’t a major/ long distance move so it’s feasible. Seems like no one wants to make this move (based on the ability to grab low- cost fixer upper). Really depends on your wants, and whether WV is an ideal area for you.
Bigben030@reddit (OP)
Sent you a message on here
Bigben030@reddit (OP)
Okay cool I can message you located on the eastern shore of Maryland , property have 14.93 acres
TheSensiblePrepper@reddit
It really comes down to you being able to find work. You can own a house outright but if you can't pay for food and basic needs, that house isn't worth much.
You said you're a Mechanic in another comment. Great, so aren't a lot of other people in WV. A lot of Blue Collar work that doesn't have a huge pay range because of demand versus need. Are you a specific kind of mechanic? Small Engine, Diesel, what? What makes you in demand at just 25 years old?
Why are you moving from Maryland to West Virginia? Have you ever been there before? Do you have family or a support system there?
I am not trying to be Mr. Negative about this but as someone who has lived all over the World and moved several times with next to nothing for nothing, I am trying to get you to think of the questions that need to be answered.
Bigben030@reddit (OP)
I’m a bus fleet mechanic/automobile heavy equipment etc. yes my mother in law lives there. I don’t care for Maryland politics and I’d taxes etc. tired of having to work 7 days a week to get by. I’m obviously going to have worked lined up before anything happens. I appreciate you asking all these questions helps me plan and think better
TheSensiblePrepper@reddit
You should be fine finding work as long as the work needs to be done.
Good to have someone you know.
Trust me, I get it.
My only advice is this. You're moving to a place that few people want to be. This has benefits and drawbacks. When times get hard there, they really get hard. That is why people leave and you're able to buy a "fixer upper" for $40k. No one wants to live there. Owning a house outright is great but not if you can't pay the bills living there because everyone else leaves or can't afford your services and no one is willing to buy your house.
My only other advice is to have the water tested before you make a purchase. Most of the water in WV is basically liquid cancer because of all the mining. You need serious filter systems to bathe or drink anything on a Well.
I am not trying to discourage you. I just want you to think about all these things. I wish you nothing but the best, regardless of what you do.
Bigben030@reddit (OP)
Okay thank you I didn’t know about the water issues. I figured the water was decent up in the hill areas. Definitely something to consider
TheSensiblePrepper@reddit
Long story short, because of all the mining and the Government being so "Pro Business" for so long, the water systems have basically gone to Hell. They also use those old mines to store used Nuclear Reactor Waste. Think about that long term.
That statement isn't about Politics, but facts that are resulting from it.
Bigben030@reddit (OP)
Oh that’s crazy. That stuff definitely leaks into the ground I would think even if it was miles away it would still ruin the ground water everywhere eventually. I live on eastern shore of Maryland so our water isn’t really great either or drinkable I have a water softener just so my clothes come out clean lol. Seems every where is shit show in some aspects
TheSensiblePrepper@reddit
Nevada and West Virginia are where almost all of the US Nuclear Waste is being stored. You want it in the ground and in a place with few people. They pay the local Governments well for that.
That's because of all the pollution over the years going into the Oceans from the Major Cities. We were very short sighted for a lot of years and now we are paying the price.
No place is perfect but some are better than others.
Bigben030@reddit (OP)
Yeah seems there is “underground” mining about 10-15 miles from the property we are interested in. Not sure how that plays into the water quality
TheSensiblePrepper@reddit
Does it say what they are mining for? That's important.
Bigben030@reddit (OP)
Coal mining about 6 miles down the road underground not surface
TheSensiblePrepper@reddit
If it's Coal or Shale Oil, they use high powered water drills to get to it. This water runoff seeps into the ground water. A by-product of Shale Oil is Natural Gas. So much of it is released that they literally pay companies to capture it and take it away. Some companies don't even want to bother with that and just let the Natural Gas go into the ground water. That is why you have situations where people can literally light the water out of their kitchen tap on fire.
I would insist on doing a Full Panel Water Test before the sale. Even if they provide their own recent test, I would still insist on one. Be ready for the seller to tell you they aren't interested in doing business with you then.
Bigben030@reddit (OP)
Okay I’ll definitely be doing that for sure. My current well in Maryland failed for total choliform but other than that was perfect levels besides hardness which is resolved by the softener
TheSensiblePrepper@reddit
Chloroform or Coliform Bacteria? Either can be filtered out or treated.
You might find that in WV, your water needs a full Reverse Osmosis System just to not kill you. That's with you replacing very expensive filters every 6-12 months.
Bigben030@reddit (OP)
Coliform I believe water guy said it was because my well is 90 feet I believe here. Doesn’t take much to hot water here 😂. Yeah sounds not encouraging even being paid for house
TheSensiblePrepper@reddit
That is treatable/filterable and not crazy expensive to do.
Bigben030@reddit (OP)
Yeah read like a some form of UV light system does it.
TheSensiblePrepper@reddit
UV Light or a 0.5 micron Filter system. It doesn't take much.
Bigben030@reddit (OP)
Never heard of 0.5 micron filter system. I do know my water system has a filter in line after the softener before running into the tanks for the softener .
TheSensiblePrepper@reddit
It's a basic filter. You can buy a 0.1 micron, which is better than 0.5 micron, filter for your refrigerator with a water dispenser. They cost around $35 for a 4 pack on Amazon. My point is that it doesn't take much.
Bigben030@reddit (OP)
Okay gotcha thank you
Bigben030@reddit (OP)
How come the coal sitting there unbothered doesn’t ruin the water? Is it just the process of removing it that does?
TheSensiblePrepper@reddit
It does but extremely slowly over many many years. Especially if it doesn't get contact with water often. That is why you will be told not to drink the city water after a big flood of the mines. It's all the coal dust.
Remember what I just said about the coal dust in the water during a flood? When you mine, you're basically doing daily what is only down every 100 years or so. Even if they are pumping the water out of the mine as they drill, where do you think that water goes? They just dump it into the lakes and rivers. Then pay a "fine" for doing it that is capped because the companies pay off the politicians.
Bigben030@reddit (OP)
Absolutely crazy
TheSensiblePrepper@reddit
Again, this isn't political. We have just allowed a lot of businesses to profit by destroying our future. They all knew what they were doing and didn't care because they didn't live there. If they do, they have clean water trucked in daily.
There's a reason so few people live in places like WV and those that do die rather young in general.
Bigben030@reddit (OP)
Yeah makes sense. Gotta love profit over people
Bigben030@reddit (OP)
Not sure I think coal. I’ll check again
OnTheEdgeOfFreedom@reddit
I'm generally a huge fan of getting debt free as early in life as possible. It makes a huge difference. But in one survey, West Virginia ranked 48 out of 50 for its economy, and from what I can see the prospects of it sinking below Louisiana are good. It's not like coal mining is the next big thing. And you may be less fond of WV politics the first time you need services of any sort there. Planning on raising kids? I wouldn't care to in those school systems...
And the sentence "cashing out my pension" really worries me.
On the one hand I hate telling people not to follow their dreams. I mean I just moved from the US to Costa Rica, which some of my friends thought was batshit crazy - but I couldn't be happier. On the other... I see some red flags in what you're proposing, and the big one is assuming you'll find another job with a pension. I'd want a signed job offer first. The next big flag is WV's track record on ecology, health, education, and support for the poor. There's more to life than work, and when I look here: https://www.advisory.com/daily-briefing/2024/06/20/cancer-rates#:\~:text=According%20to%20CDC%20data%20from,at%20498.8%20per%20100%2C000%20people.
I see a state that has a bit more cancer than most, but a LOT more cancer deaths than just about anyone else. That's a good measure of a piss poor medical system, which is a hard No for me.
I dunno, man. I get the draw of not having a mortgage but I'd move VERY carefully on this one.
Bigben030@reddit (OP)
Thank you for all this
NorthernPrepz@reddit
My advice is to forget about prepping for one minute, you are not moving cross country, it’s one state and you can prep in MD or WV.
You are young, Where are you going to have the best cash flow and earning potential? Take advantage of compounding to save as much as possible as early as possible in tax sheltered accounts. Allocate a certain amount of for propping and a certain amount for savings. Some prepping things like deep pantry buying on deal can actually help you save money. You can be prepped for Tuesday/Doomsday/Retirement but remember cashflow is king.
Bigben030@reddit (OP)
Thank you definitely important for sure. Maryland pays more for sure. But costs more too .
improbablydrunknlw@reddit
Check your pension rules, some don't allow you to take from it until you hit retirement age.
Bigben030@reddit (OP)
Yeah I have. I can’t collect monthly payments but I can cash out with paying tax on it of course lol
improbablydrunknlw@reddit
Of course lol
Bigben030@reddit (OP)
Gotta pay big brother